Everyone should have a Bitcoin wallet as part of the way they make, save, send and spend money. The world is going paperless and Bitcoin is the way of the future of how we interact with money. Bitcoin is a digital cryptocurrency exchanged on the Bitcoin network. Older financial transaction systems are slow and expensive fees are attached when you use them. With Bitcoin, an electronic cryptographic key pair keeps your transactions safe and secure. A Bitcoin wallet should be kept password secure just as you would keep your real wallet secure.
Make and Receive Payments with Your Bitcoin Wallet
A Bitcoin Wallet can be an application that you install on your smartphone or computer. It is always a good idea to save an offline copy of your wallet as backup. It is best to shop around and learn which wallet app is best for your needs. Bitcoin Wallets use the Bitcoin “Protocol” or “rules” that are set up to keep your transactions safe and secure. In your wallet you will have a private secure key for every transaction. Similar to email, you must always have your password and private key to send and receive Bitcoin monies. You cannot reuse Bitcoins they are only good for one transaction. With a Bitcoin wallet such as https://www.abra.com/cryptocurrency/bitcoin/you can send and receive money and convert it back into many different currencies to suit your needs.
Bitcoin Has A Safe Secure Network
The Bitcoin network consists of many thousands of computers working all around the world. There are Bitcoin nodes and Bitcoin miners. Bitcoin nodes run the protocol or rules of the transactions. If the transaction does not meet protocol, it doesn’t go through. Bitcoin miners produce secure blocks that meet protocol. The block must pass through the nodes successfully for the transaction to be complete. Bitcoin nodes receive incentive payment in rewards for following protocol quickly.
In general, a good rule of thumb is not to have too much Bitcoin in your wallet app. It is not a place to store your money like a savings account. It is good practice to have in your Bitcoin wallet what you would normally have in your regular wallet. Always keep a backup of your Bitcoin wallet as it holds hidden private keys internally that could be hard to restore should you lose your phone. Make sure to encrypt your backup especially if you’re storing it in the cloud where it could be more susceptible to a malicious attack.
Buying and Selling Bitcoin
Bitcoin is still relatively new and still developing and fine tuning its future. The best way to buy Bitcoin is through a broker or Bitcoin exchange market. Bitcoin is a speculative investment with buy low sell high recommendations. Keep up to date with world news as political and economic events can impact Bitcoins. Be conscious of advances in new technology that can also affect the value of Bitcoin. Always use your Bitcoin wallet which is a secure place for speculative Bitcoin investment transactions.